Posts tagged with: wind power

In a bid to increase profitability among its offshore wind farms, China has introduced a feed-in tariff system designed to make the generation of electricity via wind farms economically viable. China has recently been a leading advocate of the tariff system as the Beijing government seeks to diversify both the economy and the means of energy generation. With the New York Times last week announcing that green power is taking root in China, the move to encourage the take up of wind power generation comes as no surprise as the Asian government is supporting all kinds of renewable energy, especially solar and wind.

The Chinese wind feed-in tariff system will inevitably attract investments in the offshore wind generation industry there with the hope that it will enable the clean, wind energy to compete with that generated via coal fired plants. The guaranteed premium rate which will be offered to wind generators will be met by the existing grid operators with the additional cost being spread over all electricity consumers. The idea is that bigger, more profitable wind plants will receive a more generous tariff rate in order to help them catch up with the bigger wind farms.

The tariff payments are set at around 0.51 Yuan the equivalent of £0.05 per unit of electricity fed in to the grid, depending on the size of the wind farm. Compared with the rate paid for coal fired electricity (0.34 Yuan) the wind farms will e set to receive a generous payment. The announcement by the National Development and Reform Commission (NDRC) stated that the scheme will,

“change current inconsistent pricing, foster clear expectations and facilitate investments in the sector”.

The previous system which operated regarding wind power electricity purchasing involved public bidding using low-rate tariffs which did not enable most wind farms to gain grid connectivity, a hindrance which meant that at least 20 per cent of China’s wind power producers were unprofitable. With the feed-in tariff system generally regarded as by far the most effective means of generating capital in green energy, China will be set to succeed in its bid to diversify its economy and become a major player in the world of green energy production.

The New York Time’s headline, ‘Green power takes root in China’ is representative of a dramatic move towards renewable energy which is taking place in China. The giant Asian power has traditionally been known for its use of fossil fuels with a strong media emphasis being given to pollution problems in China’s major cities resulting from coal burning and extensive carbon emissions from vehicles.

Certainly, with the Beijing Olympics of last year, the worlds eyes were focused sharply on the Chinese capital and the seemingly permanent smog covering which acted as a testament to Chinese heavy industry and the proliferation of vehicles in modern China.

However, it is a marked change in Chinese legislation which prompted the New York newspaper to run with the ‘Green power takes root’ line. The change has come in the form of a national renewable energy level stating that utilities must generate 8 percent of their energy by renewable means by 2020. The fact that this 8 percent figure does not include hydroelectric power adds to the importance which the Chinese are now placing on green energy.

The growing awareness of the lack of long-term sustainability in traditional coal energy sources has prompted the Chinese government to take action to maintain China has a major industrial power well in to the future. There has also been somewhat of a frenzy among private companies seeing the opportunities that will undoubtedly present themselves in the Chinese renewable industry, with a growing activity particularly in sectors such as wind and photovoltaic technology which will inevitably boom in China in the near future.

The New York Times was keen to use this Chinese government action to make comparisons with the comparatively weak efforts being made in Washington to spur the renewable sector in the United States. Indeed, in the United Kingdom, with the recent feed-in tariff legislation, members of the green energy industry will be hopeful that government action in the UK will have the same effect it has had on the Chinese market.

The New York Times asserted its almost neurotic view of Chinese renewable growth compared to that of the US by warning,

China has a target in place to produce 8000 megawatts of energy by wind energy by 2010 which they are set to smash. If China continues apace to move towards green energy, they will surely shame efforts currently being made in the West to develop their own sustainable renewable industries

The announcement last week that the largest onshore wind farm in Europe is to be expanded is set to offer a massive boost to renewables in the UK. The announcement by the Scottish first minister Alex Salmond will see the construction of a further 36 wind turbines on the site. The permission to extend the East Renfrewshire site by the government will be seen as a step towards realizing some of the rhetoric spoken this week in regards to a ‘green new deal’ in Britain.

Gordon Brown’s announcement at the beginning of this year about the introduction of a green new deal, was a reference to the reforms made by the Roosevelt administration in the face of the 1930s depression which gripped the world. Many were encouraged by the language of the announcement, believing it to be a real indication of a move towards a green economy. Certainly, the extension of the Eaglesham Moor wind farm site will go some way to contributing to the low-carbon economy espoused by politicians in recent months.

In real terms, it is likely that the wind farm expansion will lead to the creation of around 300 jobs and will make the site the first over 300MW in Europe with a total capacity of 462MW, enough to power up to 250,000 homes. As the UK government seeks to meet its climate change targets of cutting carbon emissions 80% by 2050, the Whitelee wind farm will provide evidence that there is at least some tangible work being done to both establish a green economy and meet its targets.

Speaking about the expansion of the wind farm expansion, Alex Salmon commented,

“Whitelee in its current form is already flying the flag for onshore wind power in Europe. The planned extension, which I am delighted to announce today, will enable the wind farm to harness its comparative and competitive advantage in wind generated energy within Europe.

He went on to add, “It has the infrastructure, the expertise and the capacity to continue to develop in the future.”